EUROPE
« In The NewsVolvo Commences High Court Claim Against Pilkington for Its Losses Resulting from the Car Glass Cartel
Volvo Car Corporation has today confirmed that it has issued an action in the High Court in London against car glass manufacturer Pilkington Group Limited and its subsidiary for their involvement in a 5-year car glass price fixing cartel. Global claimant law firm Hausfeld & Co LLP is acting for Volvo, which seeks damages for the illegally inflated prices charged for car glass over the period of the cartel.
Car glass is specially reinforced glass used for windscreens, side and rear windows and sun-roofs in new cars and also in replacement parts. In a Decision in December 2008, the European Commission found that Pilkington and three other major car glass manufacturers (Asahi, Saint-Gobain and Soliver) had conspired to fix prices and allocate markets for car glass products between 1998 and 2003, in breach of EC competition law. The four company groups together controlled approximately 90% of the car glass used in the EEA in new cars and for branded replacement glass for cars.
Then Competition Commissioner, Neelie Kroes commented that the cartel was “unethical and wholly illegal” and the cartelists “cheated the car industry and car buyers for five years in a market worth two billion euros in the last year of the cartel.”
The provisional confidential decision published by the Commission states:-
“The infringement consisted in concerted allocation of contracts concerning the supply of carglass for all major car manufacturers in the EEA, through coordination of pricing policies and supply strategies aimed at maintaining an overall stability of the parties’ position on the market concerned.”
Fines were imposed by the Commission totaling almost €1.4billion, setting a new record for the highest fine imposed in relation to a European cartel.
Under European law, any business or individual affected by cartel activity has a right to claim damages before their national court and can rely on the Commission Decision as evidence that the cartel took place and was illegal. In the action launched in London, Volvo seeks damages for the illegally inflated prices charged for car glass over the period of the cartel.
Hausfeld partner Anthony Maton comments:
“The car glass cartel was fined at record levels by the Commission and caused substantial damage to our client Volvo and others in the struggling car industry.” “Volvo has therefore instructed us to recover the significant financial losses it suffered due to these inflated prices over a period of 5 years and hopes that Pilkington will take a responsible and commercial view in recognising its liability to Volvo.”
For further information or to arrange interviews please contact:
Rohit Grover
Spada
Tel: 020 7269 1430
Background – the car glass cartel
- Car glass is specially reinforced glass that is used for windscreens, side and rear windows and sun-roofs. In 2008 the market in the EEA was estimated to be worth €2 billion.
- For periods between 10 March 1998 and 11 March 2003 manufacturers of car glass discussed target prices, market sharing and customer allocation in a series of meetings and other illicit contacts.
- The European Commission started its investigation on the basis of information provided by an anonymous informant leading to surprise inspections in 2005 at several sites of car glass producers in Europe.
- On 12 November 2008 the Commission announced that as a result of its investigation it had imposed fines totaling €1,383,896,000 on 4 corporate groups, Asahi, Pilkington, Saint-Gobain and Soliver for their participation in the cartel. A copy of the Commission Announcement can be found at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1685&format=HTML&aged=0&language=EN&guiLanguage=en
- The four company groups together controlled approximately 90% of the automotive glass used in the EEA in new cars and for branded replacement glass for cars.
- Asahi had its fine reduced by 50% under the Commission’s 2002 Leniency Notice based on its co-operation and provision of additional information during the Commission Investigation.
- The fine imposed on Saint-Gobain was increased by 60% on the basis it was a “repeat offender” having previously been fined for cartel activities.
NOTES TO EDITORS
Hausfeld & Co LLP is led by industry doyen Michael Hausfeld and together with its sister practice, Hausfeld LLP, is widely recognised as one of the leading and best-known claimant law firms. It is at the forefront of numerous innovative legal actions that are expanding the quality and availability of legal recourse for aggrieved individuals and businesses around the world.
Practice Areas: Antitrust / Competition
